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Unformatted text preview: 15*12 = 180 15*10 = 150 Profit = 180150 For each shortage, the cost is 4$ So at demand = 16, supply equal 15, we have 304 = 26 At D = 17 and S = 15, the number should become 264 = 22, etc. We can use the same logic to produce the other cells. This is for filling the cells to the right of diameter of the matrix. For numbers to the left of the diameter of matrix, for example when D = 17, and S = 18 17*12 = 204 18*10 = 180 Profit = 204180 = 24 But the salvage for unsold case is 2$ So 24+ 2 = 26 You have to continue this reasoning to complete the pay off matrix. Hope this helps....
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This note was uploaded on 06/17/2010 for the course MAT 540 taught by Professor Azad during the Spring '10 term at Strayer.
 Spring '10
 AZAD

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